GUWAHATI: Prime Minister Narendra Modi is scheduled to arrive in Washington on Wednesday for a two-day visit, marking his first bilateral trip to the United States since President Donald Trump began his second term. With uncertainties surrounding US immigration and trade policies, the discussions between the two leaders are expected to center on strengthening India-US strategic and economic ties.
This visit is significant as it marks the earliest meeting between an Indian Prime Minister and a newly elected US President. Modi and Trump shared a strong personal rapport during the latter’s first term, and from India’s perspective, a face-to-face dialogue is crucial for maintaining diplomatic momentum.
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As of 2024, the United States remains India's largest trading partner, with bilateral trade reaching a record $129.2 billion. However, while India accounts for nearly $120 billion in trade with the US, it ranks only tenth among America’s trading partners.
India primarily exports pearls, semi-precious stones, pharmaceuticals, and electrical equipment to the US, while importing crude oil, gems, nuclear reactors, and medical equipment. Given the trade tensions between the US and its key partners, including Mexico, Canada, and China, India could capitalise on the opportunity to increase its exports in technology, electronics, and jewelry.
Former US ambassador to India Kenneth I. Juster and trade expert Mark Linscott noted in a recent Foreign Policy article that both nations are keen on expanding their economic influence in the Indo-Pacific and countering China's growing economic dominance. They emphasised that conditions are favorable for Modi and Trump to negotiate a major trade agreement.
According to media reports, India had a $45.7 billion trade surplus with the US in 2024, meaning it exported significantly more than it imported. Indian goods made up approximately 2.7% of total US imports last year.
Amid concerns over trade imbalances, Trump recently announced reciprocal tariffs on nations that impose duties on US products, potentially affecting India. However, New Delhi has been revising its trade policies, possibly to strengthen its case for avoiding such tariffs.
While Trump has criticised India's tariff policies in the past, the Modi government has shown a willingness to make adjustments. Recently, Finance Minister Nirmala Sitharaman reduced import duties on motorcycles and electric vehicles, a move likely to benefit American companies such as Harley-Davidson and Tesla.
